Many life lessons can apply to multiple aspects of our lives, including our finances. These principles guide us in making better decisions to improve our finances. And, as we make informed financial decisions, the quality of our lives greatly improves. As you start the new year, here are 5 life lessons that can help you improve your finances as well.
Setting Goals and Accomplishing Them Makes Life More Meaningful
Setting goals is an integral aspect of your life if you want to accomplish more success in life. Goals are also ai important part of improving your financial status. When you set financial goals, you tend to achieve them faster because the goals you set guide you to stay focused and committed towards their achievement. Plus, you can always compare your progress to the goals and make changes where necessary.
More importantly, you need to set smart goals. That is, the goals should be specific, measurable, attainable, realistic and time-bound. An example of a smart goal will be saving $20,000 before the end of December 2022 by deducting 10% of your income before making any expense. When you set smart goals, it becomes easier to achieve them.
Copy the Experts
You don't have to reinvent the wheel of financial success because it is easier and faster to copy the ways of successful finance mentors. Whether it's in your finances, businesses, relationships, or spiritual life – there are people who you admire that are doing better than you currently are in a particular area of your life.
Copy the lifestyles and character that make those you admire stand out as your role model. This is aptly said by Robert Kiyosaki "If you want to go somewhere, it is best to find someone who has already been there."
You Need Multiple Sources of Income to Attain Financial Freedom
Have you ever given any thought to this crucial step in attaining financial freedom? Check out the millionaires and billionaires in your industry, and you'd understand my point. Having a "secured" job is great, but many of us need more than one income to become a billionaire or a millionaire if that's your goal.
For instance, if you're a professional plumber that has a regular day job, you can use your time, knowledge and resources to create multiple sources of income by starting a blog or sharing tips on social media. You can also create a YouTube channel to share incredible content on plumbing.
Even if you don't become a millionaire by blogging, you're better off than someone who has no multiple streams of income.
Learning is a Lifelong Process
Seeking specific knowledge about your goals is a necessary step to achieving them. If you desire financial independence, then by all means seek and implement the relevant knowledge that will help you improve your finances. Read books, listen to audiobooks, or watch finance documentaries. Whatever it is you do, don't go a day without learning.
Warren Buffet, billionaire and investment guru, aptly says “Read 500 pages…every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” Be an exception, learn and implement these life lessons to kickstart your financial freedom journey.
Discipline is Key
It's great to dream and picture yourself living your dream life, but remember you have to work to achieve these goals. This is where discipline comes into to play. Many people will quit at this crucial stage due to one reason or another.
But from my experience in life, I'd say they weren't committed to their goals in the first place because discipline and commitment go hand in hand. You can't have one without the other. In Jim Rohn's words, "Discipline is the bridge between goals and results."